PHILADELPHIA, Dec. 13, 2010 /PRNewswire/ -- The PFM Group has announced that the February 2010 offering of their Financial Advisory client, The Southern California Public Power Authority (SCPPA), for $237.24 million of Milford Wind Corridor Phase I Project revenue bonds, has won the 2010 Bond Buyer's National Deal of the Year award. The deal, which already has been replicated to fund another wind project, financed prepayment for electric energy output from a wind energy project located near Milford, Utah. The transaction also won the regional Deal of the Year award for a transaction by a large issuer in the Far West region.
The Bond Buyer awards program, now in its ninth year, recognized some of the country's most innovative municipal bond issuers for transactions financing a range of projects, including transportation, schools, water and sewer systems, a hospital, economic development through investment in biomedical and scientific research, wind energy, and public pensions. The 2010 awards, which considered deals that closed between Oct. 1, 2009, and Sept. 30, 2010, drew nearly 80 nominations for transactions across the country ranging in size from more than a billion dollars to just a few million. PFM Group served as financial advisor for this and all other transactions for SCPPA since 1998.
The entries were evaluated in October by The Bond Buyer's editors and bureau chiefs, who looked for innovation, efforts by government issuers to accomplish their goals in challenging times, transactions that could serve as a model for other financings, and the public purpose for which transaction proceeds were used.
"SCPPA's energy prepayment transaction constitutes the first significant use of tax exempt bonds to finance a prepayment for electric energy for a large scale renewable project," explained Daniel Hartman, the PFM Managing Director who led the project for PFM Group. Mr. Hartman currently co-heads the firm's national public power group and works with utility clients across the country. "Through its unique prepayment financing structure, SCPPA is able to provide the output of this wind energy project to its participating members at significant cost savings, arising from, among others, the tax incentives available to the private developer of this renewable energy project," Hartman said.
Speaking for SCPPA, Bill Carnahan, Executive Director of SCPPA, noted that, "This shows how renewable energy -- which is going to be critical to our economy and environment going forward -- can be financed at competitive rates. It is an excellent example of what can be accomplished with cooperation among SCPPA members and the public and private sectors work together," he added. "The structure of this transaction can serve as a model for subsequent SCPPA financings of renewable energy resources, as well as being a trend setter for the entire market," Carnahan concluded.
As the top-ranked independent financial advisory firm in the nation, PFM has been involved in financing programs totaling in excess of $435 billion. Founded in 1974, The PFM Group provides independent financial advisory services to local, state, and regional government and non-profit clients throughout the United States in their dealings with the capital markets. PFM Asset Management LLC, also part of the PFM Group, at September 30, 2010 had $36.5 billion in assets under management for state and local governments and non-profit institutions, and provided non-discretionary advice for an additional $2.3 billion in fixed income securities. PFM also provides best practices and pension advisory consulting services and currently employs more than 430 individuals serving a broad base of clients from 34 offices located in every region of the country.
SOURCE The PFM Group